South Korean shares closed higher on Tuesday, recovering from earlier losses as investors awaited key corporate earnings due this week, including results from California-based chip giant Nvidia.
The Korea Composite Stock Price Index, or Kospi, increased by 45.78 points, or 0.7%, to close at 6,742.74. The Kosdaq rose by 13.82 points, or 1.7%, to close at 827.15.
In economic news, South Korea's consumer sentiment fell in August, with the Composite Consumer Sentiment Index dropping 2.3 points to 104.5, according to data from the Bank of Korea on Tuesday.
The reading compared with the 106.8 level recorded in the previous month. A reading above 100 indicates optimism, while a reading below suggests a deteriorating outlook.
Meanwhile, inflation expectations for the upcoming 12 months were unchanged from the previous month at 2.7%.
In corporate news, the management and the 400,000-member labor union of Hyundai Motor (KRX:005380) reached a possible wage agreement early on Tuesday after the union staged 60 hours of strikes this year that led to production disruptions and significant sales losses, Yonhap News reported the same day.
The strikes caused about 120 hours of production disruptions and are estimated to have lowered output by 55,200 vehicles, with lost sales surpassing 2.3 trillion won, the report said.
Under the deal, monthly base pay will increase by 100,000 won, while workers will receive a performance bonus of over 400% of monthly salary and an additional 12.5 million won payment. The parties also agreed to extend the retirement age from 60 to 65 if relevant laws are revised, it said.
The agreement will be subject to a union vote on Aug. 31, the report said.
Shares of the automaker added nearly 2% at market close.